H. Yoo
Research expert covering South Korea
Solar energy in Spain - statistics & facts
Renewable energy is currently experiencing substantial development in Spain. With the goal of reaching climate neutrality by 2050, the country is implementing measures to achieve a 100 percent renewable electricity mix by that year. Although wind is currently the most used renewable resource in the Mediterranean country, solar energy is growing at a very fast pace. In fact, the solar capacity installed has more than quintupled in the last five years. In 2023, Spain was the sixth country worldwide in terms of new capacity additions.
Corporate power purchase agreements (PPAs), a type of contract in which energy developers receive funding from third parties, are also growing in Spain. The country is currently considered one of the most attractive markets in Europe. It has, together with Italy and Portugal, the cheapest and more competitive prices per megawatt.
Aside from the decrease in the installation costs of solar, this has been possible thanks to the changes in legislation introduced during 2018 and 2019, when the administrative and economic barriers associated with the installation of solar panels for self-consumption were significantly reduced. Regarding the different Spanish regions, the Community of Madrid has the largest potential for solar photovoltaic self-consumption, with a forecast of roughly 2.1 gigawatts by 2030, followed by Andalusia and Catalonia.
Investment in solar energy
Solar energy is expected to continue this accelerated growth in the next few years. The renewable auctions planned by the Spanish government will award at least 1.8 gigawatts of solar photovoltaic energy per year to interested parties until 2026. In the case of solar thermal energy, this figure stands at roughly 100 megawatts per year. Furthermore, thanks to a decrease in the cost of solar technologies, the subsidy-free market is becoming increasingly competitive.Corporate power purchase agreements (PPAs), a type of contract in which energy developers receive funding from third parties, are also growing in Spain. The country is currently considered one of the most attractive markets in Europe. It has, together with Italy and Portugal, the cheapest and more competitive prices per megawatt.
Self-consumption of solar energy
The installed capacity for self-consumption of solar energy has also seen a big growth in Spain. In 2023, a total of 1.7 gigawatts for self-consumption were added to the available PV capacity in the country, the second largest amount registered in the last years. This elevated the total self-consumption capacity in the country to almost seven gigawatts.Aside from the decrease in the installation costs of solar, this has been possible thanks to the changes in legislation introduced during 2018 and 2019, when the administrative and economic barriers associated with the installation of solar panels for self-consumption were significantly reduced. Regarding the different Spanish regions, the Community of Madrid has the largest potential for solar photovoltaic self-consumption, with a forecast of roughly 2.1 gigawatts by 2030, followed by Andalusia and Catalonia.
Solar energy outlook in Spain
Solar energy is expected to continue with this trend of rapid growth in the Mediterranean country. Solar PV capacity is forecast to reach roughly 82.2 gigawatts in 2027, ranking only after Germany among European countries. In 2028, solar PV capacity additions in Spain are expected to range between 32 and 52 gigawatts.
